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Old 02-21-2004, 02:02 PM
John A. Weeks III
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Default Re: Repaying back home equity loan - best way?

In article <K7IZb.67140$KV5.37241[at]nwrdny01.gnilink.net> , squeaky88th
<squeaky88th[at]yahoo.com> wrote:

- quote -

> I used my home equity line of credit to buy a piano. I can sell all my
> stocks,
> mutual funds and index funds to pay it off. Should I pay it off all at
> once, or
> in installments? The line of credit rate is 5.25%. The reason I ask is
> that so
> far, my investments have been doing well and I'm hesitant to get out.


I think you just answered your own question. Assuming that the
H/E loan is tax deductable, the real interest rate is more like
4%. As long as your other investments are doing better after
taxes, stay invested and do the best you can with the loan.

If you are not comfortable with debt, then ignore the mathematics
and do what makes you sleep well at night. On the other hand, if
your stocks, mutual funds, and index funds are in an IRA, 401K,
or other qualified investment, then I would suggest you to not
touch them until retirement.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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  #-1  
Old 02-21-2004, 11:29 AM
squeaky88th
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Posts: n/a
Default Repaying back home equity loan - best way?

I used my home equity line of credit to buy a piano. I can sell all my
stocks,
mutual funds and index funds to pay it off. Should I pay it off all at
once, or
in installments? The line of credit rate is 5.25%. The reason I ask is
that so
far, my investments have been doing well and I'm hesitant to get out.

Thanks in advance.

 

Tags
back, equity, home, loan, repaying
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